ACBM WACC - Weighted Average Cost of Capital
The WACC of ACRO Biomedical Co Ltd (ACBM) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.4% | 6.4% |
| Tax rate | 8.6% - 14.9% | 11.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.9% - 5.3% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.34 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.4% |
| Tax rate | 8.6% | 14.9% |
| Debt/Equity ratio | 1.9 | 1.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.9% | 5.3% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ACBM | ACRO Biomedical Co Ltd | 1.9 | -3.27 | -1.24 |
| AHCO | Adapthealth Corp | 1.57 | 0.26 | 0.11 |
| AXRX | Amexdrug Corp | 3.53 | -0.37 | -0.09 |
| GEG | Great Elm Group Inc | 1.09 | 0.02 | 0.01 |
| INDR | Indie Ranch Media Inc | 1.9 | 0.11 | 0.04 |
| MDRM | Modern Mobility Aids Inc | 0.44 | -0.75 | -0.55 |
| MJNA | Medical Marijuana Inc | 9.08 | 0.41 | 0.05 |
| PETQ | PetIQ Inc | 0.48 | 0.61 | 0.43 |
| PRPO | Precipio Inc | 0.05 | 1.01 | 0.96 |
| TCAN.CN | Transcanna Holdings Inc | 24.82 | 2.07 | 0.09 |
| Low | High | |
| Unlevered beta | 0.03 | 0.06 |
| Relevered beta | 0.01 | 0.19 |
| Adjusted relevered beta | 0.34 | 0.46 |
ACBM's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ACBM:
cost_of_equity (6.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.